・Insurance pool creation
InsureDAO allows users to create any insurance pool like anyone can create any liquidity pool on Uniswap. Any insurances, including even risky protocol insurance, will be available to buy and sell on InsureDAO.
This functionality is not available on the testnet since we want to guide testnet participants to InsureDAO through the insurance pool we have set up.
InsureDAO uses an algorithm to measure risks and the pricing of premiums based on the market’s supply and demand. InsureDAO aims to ensure that insurance is always available by dynamically adjusting insurance prices based on market demand and supply.
・Custom Risk Index
Custom risk Index consists of different insurance pools. Liquidity provider can select any index to deposit their funds based on their risk appetite. Furthermore, every index pool leverages its staked liquidity and provide them to their underlying pools, increasing the underwriter’s fee earnings while lowering insurance premiums.
Leveraged rate and liquidity allocation among underlying pools will be determined by DAO.
・Liquidity Mining & boost
InsureDAO has a liquidity mining program with a reward of our native token “INSURE”. You can participate in the program by providing liquidity into insurance pool as an underwriter. Moreover, you can boost your INSURE reward up to a maximum of 2.5x by locking INSURE for the period you choose (Min: 1 week, Max: 4 years). The longer you lock your INSURE for, the more boosting power you have.
・Credit Default Swap pool (CDS pool)
Credit Default Swap pool is the functionality for solvency problem. As staked liquidity into index pool is leveraged, we could have solvency problem if multiple protocols got hacked at once. In the case that staked liquidity is not enough to pay out, we introduce CDS pool as a reserve fund. A portion of Index fee goes into this pool.
Although you can try providing liquidity directly to this pool, we will not simulate the insolvency case on the testnet trial.
On InsureDAO testnet, we set 3 insurance pools for imaginary protocols, 1 for Index, and 1 for CDS. Also, we set 2x leverage and equal allocation respectively.
Through the testnet, we expect that you will understand how InsureDAO works, and the significance of an insurance protocol in the DeFi space.
On the testnet, you can try and learn the fuctionalities of Dynamic Pricing and Custom Risk Index by buying & selling insurance. Also, you can simulate Liquidity Mining of INSURE. Moreover, participants will experience the whole reporting process through a pseudo-hacking event.
We aim to achieve the following goals through the testnet:
・Test and ensure the protocol security
・Get anyone ready for the mainnet launch
・Grow InsureDAO community
We set the#testnet channel on Discord. So feel free to post any comment and feedback. We believe that we can develop more secure and sophisticated protocol with passionate community users!!
Any token on the testnet has no real-world value.
InsureDAO Mission Bingo
We set the InsureDAO missions for testnet participants as an InsureDAO Bingo Challenge! You will be airdropped with INSURE after the mainnet